PIRELLI & C SPA (PIRC.MI) Stock Fundamental Analysis
BIT:PIRC - Euronext Milan - IT0005278236 - Common Stock - Currency: EUR
Taking everything into account, PIRC scores 6 out of 10 in our fundamental rating. PIRC was compared to 28 industry peers in the Automobile Components industry. PIRC has an excellent profitability rating, but there are some minor concerns on its financial health. PIRC has a decent growth rate and is not valued too expensively. Finally PIRC also has an excellent dividend rating. This makes PIRC very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
PIRC had positive earnings in the past year.
In the past year PIRC had a positive cash flow from operations.
PIRC had positive earnings in each of the past 5 years.
Each year in the past 5 years PIRC had a positive operating cash flow.
1.2 Ratios
PIRC has a Return On Assets of 5.06%. This is amongst the best in the industry. PIRC outperforms 89.29% of its industry peers.
PIRC has a better Return On Equity (12.03%) than 82.14% of its industry peers.
PIRC has a better Return On Invested Capital (10.21%) than 89.29% of its industry peers.
PIRC had an Average Return On Invested Capital over the past 3 years of 6.34%. This is in line with the industry average of 6.47%.
The last Return On Invested Capital (10.21%) for PIRC is above the 3 year average (6.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 12.03% | ||
| ROIC | 10.21% |
ROA(3y)3.32%
ROA(5y)2.47%
ROE(3y)8.23%
ROE(5y)6.31%
ROIC(3y)6.34%
ROIC(5y)5.02%
1.3 Margins
PIRC has a better Profit Margin (6.79%) than 89.29% of its industry peers.
In the last couple of years the Profit Margin of PIRC has declined.
PIRC has a better Operating Margin (13.43%) than 100.00% of its industry peers.
PIRC's Operating Margin has been stable in the last couple of years.
PIRC's Gross Margin of 64.23% is amongst the best of the industry. PIRC outperforms 92.86% of its industry peers.
PIRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.43% | ||
| PM (TTM) | 6.79% | ||
| GM | 64.23% |
OM growth 3Y6.63%
OM growth 5Y-1.41%
PM growth 3Y6.75%
PM growth 5Y-3.44%
GM growth 3Y15.15%
GM growth 5Y5.65%
2. Health
2.1 Basic Checks
PIRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PIRC has about the same amount of shares outstanding.
PIRC has about the same amout of shares outstanding than it did 5 years ago.
PIRC has a better debt/assets ratio than last year.
2.2 Solvency
PIRC has an Altman-Z score of 2.03. This is not the best score and indicates that PIRC is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.03, PIRC is doing good in the industry, outperforming 60.71% of the companies in the same industry.
The Debt to FCF ratio of PIRC is 4.40, which is a neutral value as it means it would take PIRC, 4.40 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.40, PIRC is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
PIRC has a Debt/Equity ratio of 0.56. This is a neutral value indicating PIRC is somewhat dependend on debt financing.
PIRC has a Debt to Equity ratio of 0.56. This is in the better half of the industry: PIRC outperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.4 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.52
WACC6.73%
2.3 Liquidity
PIRC has a Current Ratio of 1.28. This is a normal value and indicates that PIRC is financially healthy and should not expect problems in meeting its short term obligations.
PIRC's Current ratio of 1.28 is in line compared to the rest of the industry. PIRC outperforms 46.43% of its industry peers.
A Quick Ratio of 0.84 indicates that PIRC may have some problems paying its short term obligations.
PIRC has a Quick ratio (0.84) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.02% over the past year.
PIRC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.33% yearly.
PIRC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.85%.
The Revenue has been growing slightly by 4.94% on average over the past years.
EPS 1Y (TTM)7.02%
EPS 3Y9.65%
EPS 5Y1.33%
EPS Q2Q%25%
Revenue 1Y (TTM)1.85%
Revenue growth 3Y8.31%
Revenue growth 5Y4.94%
Sales Q2Q%3.72%
3.2 Future
The Earnings Per Share is expected to grow by 9.36% on average over the next years. This is quite good.
PIRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.29% yearly.
EPS Next Y3.63%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue Next Year2.35%
Revenue Next 2Y2.88%
Revenue Next 3Y3.13%
Revenue Next 5Y1.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PIRC is valuated reasonably with a Price/Earnings ratio of 10.15.
Based on the Price/Earnings ratio, PIRC is valued a bit cheaper than 60.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. PIRC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.97, the valuation of PIRC can be described as very reasonable.
PIRC's Price/Forward Earnings ratio is in line with the industry average.
PIRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 8.97 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PIRC.
PIRC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.97 | ||
| EV/EBITDA | 4.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PIRC does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of PIRC may justify a higher PE ratio.
PEG (NY)2.8
PEG (5Y)7.64
EPS Next 2Y9.11%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
PIRC has a Yearly Dividend Yield of 4.05%, which is a nice return.
Compared to an average industry Dividend Yield of 5.12, PIRC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, PIRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
5.2 History
The dividend of PIRC has a limited annual growth rate of 2.92%.
Dividend Growth(5Y)2.92%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
29.51% of the earnings are spent on dividend by PIRC. This is a low number and sustainable payout ratio.
PIRC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.51%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
BIT:PIRC (5/27/2025, 5:35:15 PM)
6.194
-0.06 (-0.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners13.15%
Inst Owner ChangeN/A
Ins Owners25.7%
Ins Owner ChangeN/A
Market Cap6.19B
Analysts82.86
Price Target6.67 (7.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Yearly Dividend0.2
Dividend Growth(5Y)2.92%
DP29.51%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.27%
Min EPS beat(2)0.36%
Max EPS beat(2)8.18%
EPS beat(4)4
Avg EPS beat(4)14.83%
Min EPS beat(4)0.36%
Max EPS beat(4)39.27%
EPS beat(8)8
Avg EPS beat(8)22.73%
EPS beat(12)12
Avg EPS beat(12)30.02%
EPS beat(16)15
Avg EPS beat(16)34.58%
Revenue beat(2)1
Avg Revenue beat(2)0.44%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)2.31%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)2.31%
Revenue beat(8)2
Avg Revenue beat(8)-0.52%
Revenue beat(12)6
Avg Revenue beat(12)18.11%
Revenue beat(16)10
Avg Revenue beat(16)27.8%
PT rev (1m)-1.19%
PT rev (3m)1.04%
EPS NQ rev (1m)15.38%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)3.29%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 8.97 | ||
| P/S | 0.61 | ||
| P/FCF | 6.97 | ||
| P/OCF | 4.79 | ||
| P/B | 1.08 | ||
| P/tB | 10.39 | ||
| EV/EBITDA | 4.21 |
EPS(TTM)0.61
EY9.85%
EPS(NY)0.69
Fwd EY11.15%
FCF(TTM)0.89
FCFY14.35%
OCF(TTM)1.29
OCFY20.87%
SpS10.21
BVpS5.76
TBVpS0.6
PEG (NY)2.8
PEG (5Y)7.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 12.03% | ||
| ROCE | 13.26% | ||
| ROIC | 10.21% | ||
| ROICexc | 12.15% | ||
| ROICexgc | 29.34% | ||
| OM | 13.43% | ||
| PM (TTM) | 6.79% | ||
| GM | 64.23% | ||
| FCFM | 8.71% |
ROA(3y)3.32%
ROA(5y)2.47%
ROE(3y)8.23%
ROE(5y)6.31%
ROIC(3y)6.34%
ROIC(5y)5.02%
ROICexc(3y)7.45%
ROICexc(5y)5.98%
ROICexgc(3y)18.21%
ROICexgc(5y)15.26%
ROCE(3y)8.22%
ROCE(5y)6.5%
ROICexcg growth 3Y6.83%
ROICexcg growth 5Y-0.05%
ROICexc growth 3Y13.56%
ROICexc growth 5Y3.32%
OM growth 3Y6.63%
OM growth 5Y-1.41%
PM growth 3Y6.75%
PM growth 5Y-3.44%
GM growth 3Y15.15%
GM growth 5Y5.65%
F-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.4 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 70.21% | ||
| Cap/Sales | 3.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.43% | ||
| Profit Quality | 128.35% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.03 |
F-Score7
WACC6.73%
ROIC/WACC1.52
Cap/Depr(3y)65.74%
Cap/Depr(5y)60.49%
Cap/Sales(3y)5.68%
Cap/Sales(5y)5.68%
Profit Quality(3y)193.7%
Profit Quality(5y)400.33%
High Growth Momentum
Growth
EPS 1Y (TTM)7.02%
EPS 3Y9.65%
EPS 5Y1.33%
EPS Q2Q%25%
EPS Next Y3.63%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue 1Y (TTM)1.85%
Revenue growth 3Y8.31%
Revenue growth 5Y4.94%
Sales Q2Q%3.72%
Revenue Next Year2.35%
Revenue Next 2Y2.88%
Revenue Next 3Y3.13%
Revenue Next 5Y1.29%
EBIT growth 1Y7.38%
EBIT growth 3Y15.49%
EBIT growth 5Y3.46%
EBIT Next Year54.41%
EBIT Next 3Y18.84%
EBIT Next 5Y9.91%
FCF growth 1Y-7.49%
FCF growth 3Y12.02%
FCF growth 5Y7.38%
OCF growth 1Y-4.95%
OCF growth 3Y12.04%
OCF growth 5Y4.79%